Crypto & Tax

In 2018 a UK government Task Force published a report classifying Cryptoassets to include tokens such as utility, exchange, security tokens & stablecoins. The tax treatment of all tokens depends on the nature & use of the tokens, not on their definition. Currently, HMRC does not consider cryptoassets to be digital currency or money, but that could change in the future as cryptos become more widely adopted and pass the “tests” of money.

HMRC defines cryptoassets (cryptocurrency or tokens) as cryptographically secured digital representations of value that can be transferred, stored or traded electronically. While all cryptoassets use some form of Distributed Ledger Technology, not all applications of DLT involve cryptoassets.

HMRC does not consider the buying and selling of cryptoassets to be the same as gambling or betting which are games of chance and are exempt from capital gains tax (CGT).